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Freshworks swings to full-year profit in FY2025 - net income ~$191M Freddy AI crosses $25M ARR with 8,000+ customers 66,000+ businesses run on Freshworks worldwide $400M share buyback authorized, Feb 2026 FY2026 guidance: $952M-$960M revenue Freshworks swings to full-year profit in FY2025 - net income ~$191M Freddy AI crosses $25M ARR with 8,000+ customers 66,000+ businesses run on Freshworks worldwide $400M share buyback authorized, Feb 2026 FY2026 guidance: $952M-$960M revenue
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Company File · Cloud Software

Freshworks

San Mateo by way of Chennai. The company that looked at enterprise software, decided it was needlessly hard to use, and built the friendly version instead.
Founded 2010 Nasdaq: FRSH ~4,400 people SaaS · AI · CRM
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Somewhere right now, a support agent at a mid-sized company opens a ticket and a small AI named Freddy has already drafted the reply. The customer gets an answer in seconds. Nobody reads a 200-page admin manual. Nobody files a six-figure purchase order. This is the boring, useful future Freshworks has spent fifteen years building - and it is, quietly, winning.

Freshworks makes cloud software for the unglamorous work that keeps companies running: answering customers, fixing IT tickets, chasing sales leads. It is the kind of software people only notice when it fails. The company's entire wager is that it usually shouldn't.

Most enterprise software is sold to the person who signs the check, not the person who has to use it. Freshworks flipped that. - The founding idea, in one sentence
The Problem They Saw

A broken TV, an honest grudge

The origin story is almost too tidy. Around 2010, future founder Girish Mathrubootham was trying to get a damaged television replaced and hit a wall of bad customer service. The tools companies used to handle complaints like his were expensive, sprawling, and seemingly designed by people who would never have to touch them.

He had spent years inside Zoho, another Chennai software company, and he recognized the pattern. The big incumbents - the Salesforces and the ServiceNows - built powerful systems for enormous enterprises with armies of consultants. Everyone smaller got the same complexity with none of the support. The market's answer to "this is too hard" was, essentially, "pay more."

Freshworks exists because one customer-service experience was bad enough to start a company over. - Yes, the TV really broke

Pictured (in spirit): the warranty claim heard 'round the SaaS world. Not every billion-dollar company starts with a grievance, but the good ones often start with a real one.

The Founders' Bet

Two engineers, one stubborn idea

Mathrubootham and co-founder Shan Krishnasamy launched the company in 2010 as Freshdesk - a single product, a help desk you could sign up for online and actually figure out yourself. The bet was almost insultingly simple: small and mid-sized businesses deserved software that felt like the consumer apps on their phones, not like a tax form.

Investors eventually agreed. Accel wrote an early check in 2011, Tiger Global followed, and by the late 2010s Sequoia and CapitalG were backing rounds that pushed the valuation to $3.5 billion. The headquarters moved to San Mateo, California in 2018, but the engineering heart stayed in Chennai - a detail the company has never been shy about.

2010
Founded in Chennai
2017
Freshdesk → Freshworks
2021
Nasdaq IPO
~$1.03B
Raised at listing

In September 2021 it became the first India-born SaaS company to list on Nasdaq, raising about $1.03 billion at a roughly $10.1 billion valuation. The IPO reportedly turned around 500 employees into "crorepatis" overnight. Not bad for a company that began with someone's annoyance over a television.

First India-born SaaS firm to ring the Nasdaq bell. The accent on the conference calls is part of the brand now. - Freshworks IPO, September 2021
The Product

One help desk became a whole suite

Freshdesk was the seed. What grew from it is a family of products, all sharing the same allergy to complexity. In 2014 came Freshservice, an IT service management tool for the people who fix laptops and reset passwords. In 2016, Freshsales, a CRM for sales teams. Then marketing, chat, and the connective tissue between them. By 2017 the company renamed itself Freshworks to reflect that it was no longer just a desk.

Freshdesk

The original. Omnichannel customer support and ticketing, built so a small team can run it without a consultant on retainer.

Freshservice

IT and employee service management - incidents, assets, requests. The product quietly carrying the company's enterprise ambitions.

Freshsales

CRM and sales automation for teams that want pipelines without a PhD in configuration.

Freddy AI

The AI layer threaded through everything: agents that deflect tickets, copilots that draft replies, analytics that explain themselves.

The naming committee, undefeated: Freshdesk, Freshservice, Freshsales, Freshchat, Freshmarketer. Then they named the AI "Freddy" and let the streak slide. We forgive them.

The newest and most consequential addition is Freddy AI - not a separate product so much as a presence inside all of them. Freddy drafts responses, answers customers without a human, and turns mountains of support data into something a manager can actually read. Freshworks priced it boldly, raising the cost of an AI interaction from 10 cents to 50 cents, and customers kept buying anyway.

We're the attacker who's taking share. - Dennis Woodside, CEO, 2026
Milestones

Fifteen years, abridged

2010

Founded in Chennai as Freshdesk by Girish Mathrubootham and Shan Krishnasamy.

2014

Freshservice launches, opening the door to IT service management.

2016

Freshsales arrives; the single product becomes a suite.

2017

Rebrands from Freshdesk to Freshworks Inc.

2018

Headquarters moves to San Mateo, California. Chennai stays the engineering home.

2019

Series H of $150M lands the company a $3.5B valuation.

2021

IPOs on Nasdaq (FRSH) - first India-born SaaS firm on a US exchange.

2024

Dennis Woodside becomes CEO; Mathrubootham moves to executive chairman.

2025

Reaches full-year profitability; Freddy AI crosses $25M ARR.

2026

Authorizes a $400M buyback; pitches an AI-first, enterprise future at Refresh 2026.

The Proof

Customers, cash, and a turn to profit

Ambition is cheap. Freshworks has the harder thing: receipts. More than 66,000 businesses use its products, from American Express and Bridgestone to Databricks, Fila and OfficeMax. A strategic agreement with AWS put the suite on the world's biggest cloud marketplace, and its integration ecosystem now reaches tens of thousands of businesses.

Freddy AI: from rounding error to real line item

Annual recurring revenue, approximate · targets per company guidance
FY2024
~$13M
FY2025
~$25M
2028 goal
$100M

The hockey stick everyone draws and few earn: Freddy nearly doubled year over year. The 2028 number is a goal, not a fact - we're labeling it honestly so you don't have to.

The bigger headline is on the bottom line. After years of the familiar SaaS pattern - grow now, profit later - Freshworks swung to full-year profitability in fiscal 2025, posting roughly $191 million in net income. For fiscal 2026 it guided to between $952 and $960 million in revenue. The underdog, it turns out, can also keep books.

Grow first, profit eventually. Freshworks finally reached "eventually." - FY2025: ~$191M net income
The Mission

Software for the people who use it

Strip away the financials and the thesis hasn't moved an inch since the broken TV. Freshworks builds software that is fast to deploy, affordable, and designed for the agent, the IT admin, and the salesperson - not just the executive approving the budget. Under CEO Dennis Woodside the company has leaned harder into AI and started courting larger enterprises, especially in employee experience. But the center of gravity is still the same crowd the giants overlooked.

That positioning is a choice with teeth. It means competing against Zendesk, Salesforce, ServiceNow and Atlassian not on raw power, but on the radical idea that business software can be pleasant. Skeptics will note that "easy to use" is what every vendor claims. Fair. The difference shows up in who keeps renewing.

Anyone can add features. The discipline is in deciding what not to make people learn. - The unfashionable Freshworks bet
Why It Matters Tomorrow

The same ticket, answered better

Go back to that support agent. The ticket opens, Freddy drafts the reply, the customer is helped before they've had time to get annoyed - and the whole transaction cost a company a few dollars and zero consultants. That is the world Freshworks set out to build when a television wouldn't get replaced, and it is more or less the world it now ships.

The open question is whether AI rewrites the rules faster than Freshworks can. If software starts answering its own tickets, the per-seat business model bends. Freshworks is betting it can be the company that bends it on purpose - charging for the AI, not mourning the seats. Fifteen years in, the underdog has stopped acting like one. The grudge worked.